May 20, Colombo: The Cabinet Sub-Committee chaired by Prime Minister Mahinda Rajapaksa, which met today (20) focused on the rapid increase in fuel prices in the world market compared to 2019 and 2020.

The Cabinet Sub-Committee appointed on the Reimbursement of Kerosene Subsidy, Restructuring of Ports and Airports Development Tax on Crude Oil and the financial problems of the Ceylon Petroleum Corporation met for the third time today at the Committee Room 08 in Parliament under the chairmanship of Prime Minister Mahinda Rajapaksa.

The Ministers expressed their views on maintaining the relief for the people in the face of the situation that has arisen in view of the huge increase in the global fuel prices in 2021 relative to the years 2019 and 2020.

It was revealed at this meeting that a number of state institutions including the Ceylon Electricity Board are still repaying loans to the Ceylon Petroleum Corporation for the year 2019.

It was disclosed that under the fuel price stabilization with the intervention of the Ministry of Finance last year Ceylon Petroleum Corporation had been paid Rs. 50 billion but another Rs. 79 billion is yet to be received.

Accordingly, the daily loss incurred by the Ceylon Petroleum Corporation has increased significantly.

At present the Ceylon Electricity Board is incurring a loss of around 10 rupees per unit for providing subsidized electricity to the consumers as a relief measures, officials said.

A number of ministers and top officials of the relevant institutions and ministries were present at the meeting.